Last week was a BAD week for interest rates right from the beginning capped by a stronger than expected jobs report. The Mortgage Backed Security market closed down every day but Thursday, ending the week trading down -198 bps. This was the biggest market movement in over a year and pushed rates approximately .25% higher than the week before.

The market now seems less concerned about the Greek debt crisis that helped keep interest rates low. The positive economic reports, higher than expected job creation and the belief the FED will not raise their rates until 2015 are all contributing to interest rates moving higher.

Interest rates will likely continue to remain volatile and floating is very risky at this point. If you like the rate – lock it. We can always float it down if interest rates drop significantly after you lock.

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